Hughes Electronics (GMH – 22.75) is feeling the pressure of time slipping away from them as Chairman Michael Smith scrambles to contact potential investors about taking a large stake in the company and then spinning it off from parent company General Motors (GM – 59.06). Smith has contacted companies like General Electric (GE – 44.43), Microsoft (MSFT – 56-15/16), and SBC Communications (SBC – 45.57). GMH is attempting to assemble a deal that would provide GM with at least $5 billion in cash over a period of a year or more, versus the cash bid of $8 billion in cash made by Rupert Murdoch's News Corp (NWS – 35.00). Smith has been given three weeks by GM's board to pull together a deal.

The stock is down over two percent as it continues to struggle against its 10-day moving average. Closely following the trendline downward, the shares have only managed two closes above the line since the beginning of February.
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Hardware and Internet groups have joined the semiconductors in bringing the technology laden Nasdaq Composite (COMP - 2076.6) down to a new annual intraday low of 2068, earlier this morning. A bevy of favorite tech names have also fallen to new 52-week lows.

Fortunately, for now the index has bounced back up from the new low. Its recent closing low on March 2 was 2117.6. We have several trading hours to go, so we could make new lows or reverse directions upward for a rally attempt.<
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Barrett Resources (BRR – 62.90) announced late Thursday that they rejected Shell's (RD – 60.53) offer to buy the company for $1.8 billion or $55 per share. BRR said that it would seek proposals from a number of groups rather than deal with Shell alone. The board is currently urging shareholders to do nothing at this time. When RD made the offer, they did warn that they could make a hostile offer is the bid was not accepted.

Already up over two percent this morning, BRR gapped higher again, reaching another new high. BRR typically see very light option activity, but the stock's April 60 call is seeing some heavy action, with more than 1,000 contracts changing hands.
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The AMEX Pharmaceutical Index (DRG – 401.8) is following its recent pattern of trading opposite of technology, again this morning. Most major pharmaceutical companies are are experiencing gains, while the PHLX Semiconductor Index (SOX – 607.3) is reeling from the Intel (INTC – 29-13/16) warning last night, and trading down almost five percent.<
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Reported plans to cut five percent of its workforce have brought shares of Cisco Systems (CSCO – 21-3/4) to a new 52-week low of 21-3/4 during the first few minutes of trading this morning. The layoffs are a result of CSCO forecasting a continued slowdown in orders over the coming months.<
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